Warrington Council backs new SME bank with £30m capital funding

A new bank for small- and medium-sized enterprises is launching in the North West with a £30m investment from Warrington Borough Council.

Having secured its initial banking licence four months ago, Redwood Bank said it has completed its ‘mobilisation’ phase and is now open for business.

The bank, which has offices in Warrington and Hertfordshire, provides secured SME mortgages for business owners and commercial and residential property investors, in addition to business deposit accounts.

Redwood Bank attributed its swift journey to market to the fact it operates a 100% cloud-based infrastructure, which it said improves efficiency and security.

The organisation is wholly owned by Redwood Financial Partners Ltd, 33% of which is owned by Warrington Borough Council, whose executive board approved a £30m investment to form part of the bank’s capital funding.

Initially, the bank will focus on supporting SMEs across Hertfordshire, Bedfordshire and Buckinghamshire, as well as Warrington and the North West.

Redwood Bank’s co-founder and chief executive, Gary Wilkinson, said: “We are delighted to be open for business so soon following the issuing of our initial banking licence.

“We aim to offer a real alternative for small and medium sized organisations, providing them with simple transparent loans and savings accounts, great service and a promise that our money is being invested into British businesses and our local communities.”

He continued: “As many traditional banks are hampered by poor lending practices from their past and their legacy systems, we are perfectly positioned to help British SMEs take advantage of property opportunities by offering a highly-tailored service for clients that is built around our very experienced regional managers.”

Gary Wilkinson will oversee the bank’s day-to-day running. The board includes co-founder and non-executive director Jonathan Rowland and chairman David Buckley, who is also currently independent non-executive director and chair of the audit committee for CIBC World Markets Plc.